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Google Q2 Earning Breakdown

Google’s second quarter’s earning pleases many investors when they announced days ago, sending the share price up to 11% increase. We are here to examine what has led to this incredible phenomenon, and how will it impact our future undertakings in the new digital marketing paradigm.

The major component over this huge hike of revenue is one of their largest, arguably their most successful buy out – YouTube. For those who have no idea what YouTube is, they are not only the largest video platform in the world, but also the second largest search engine right behind Google. That means, Google owns two largest search engine in the world, Yep.

The online video service saw it’s watch time from mobile smartphones doubled since June 2014. The soaring sales of mobile smartphones has definitely helped quite a bit. What’s worth mentioning is, the most popular mobile operating system on the planet Android, which accounts up to 84.7% last recorded of the entire mobile operating system in the world, is also Google’s asset.

The average watch time of YouTube per day per individual crossed the 40 minutes mark, which is a 50% increase over last year, amazing. This shows the growing prominence of YouTube in the industry, where we see a growing YouTube users into the billions.

Many argues the fact that Facebook videos on the other hand, is hijacking aplenty of video traffics from YouTube. We are not writing Facebook off the books, but the earning data proves YouTube still, and will still be the leading video advertising platform for quite some time.

It really boils down to the collective strengths YouTube tries to push to their users, 2K resolution option, 360 degree virtual reality videos, automated subtitle & captions, autoplay features etc etc. “This speaks to the success of their transformation from a repository of very hard-to-find and very hard-to-monetize user-uploaded content to more professionally produced and easier to monetize content,” Paul Verna, a senior analyst for eMarketer said.

Our take is this, start making use of the display network on YouTube right now, because your competitors have already did this yesterday. If you have the extra budget to spend, produce a quality video, leave great impressions on YouTube to boost your brand image. Leverage on the readily available platform, and we promise you will not regret.

 

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